Denmark's auction set for failure

date: August 21, 2001 - source: Siemens UMTS NewsDesk

Denmark's 3G auction looks likely to be a failure due to limited interest from operators.

It is thought that there has been a drop in interest in the licenses, which was quite low anyway, because the National Telecoms Agency failed to issue clear guidelines. It has said that no less than four licenses will be offered to service Denmark's five million population. Although four will be offered, it seems doubtful that any more than four operators will be interested anyway, especially with the size of the market and the fact that Broadband Mobile recently returned its license in fellow Scandinavian country, Norway.

The strict regulations from the Telecom Agency are the reason that the operators claim their earnings potential is limited. They particularly blame the restricted price levels and restricted supply of news via mobiles. The licenses each have a minimum price tag of DKK500m (EUR67m). The agency is currently taking questions from interested parties and will do so until 28th August, after that it has requested that registration documents be handed in by 5th September. Bidding opens on Friday 22nd September, with licenses to be issued in October.

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last updated: January 12, 2004

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